Hennessy Advisors (HNNA) 10-Q 3 Aug 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Jun. 30, 2022	Aug. 02, 2022
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Registrant Name	HENNESSY ADVISORS, INC.
Entity Central Index Key	0001145255
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Address, State or Province	CA
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		7,482,188
Document Transition Report	false
Document Quarterly Report	true
Entity Address, Address Line One	7250 Redwood Boulevard, Suite 200
Entity Address, City or Town	Novato
Entity File Number	001-36423
Entity Tax Identification Number	68-0176227
City Area Code	415
Local Phone Number	899-1555
Entity Address, Postal Zip Code	94945
Entity Incorporation, State or Country Code	CA
Common Class A [Member]
Document Information [Line Items]
Trading Symbol	HNNA
Title of 12(b) Security	Common stock, no par value
Security Exchange Name	NASDAQ
4.875% Notes due 2026 [Member]
Document Information [Line Items]
Trading Symbol	HNNAZ
Title of 12(b) Security	4.875% Notes due 2026
Security Exchange Name	NASDAQ

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Current assets
Cash and cash equivalents	$ 57,480	$ 15,836
Investments in marketable securities, at fair value	10	10
Investment fee income receivable	2,168	2,795
Prepaid expenses	536	788
Other accounts receivable	283	277
Total current assets	60,477	19,706
Property and equipment, net of accumulated depreciation of $2,005 and $1,850, respectively	312	311
Operating lease right-of-use asset	740	1,010
Management contracts	80,643	80,643
Other assets	200	235
Total assets	142,372	101,905
Current liabilities
Accrued liabilities and accounts payable	2,743	4,151
Operating lease liability	365	359
Income taxes payable	424	1,050
Total current liabilities	3,532	5,560
Notes payable, net of issuance costs	38,799
Long-term operating lease liability	372	646
Net deferred income tax liability	13,690	12,437
Total liabilities	56,393	18,643
Commitments and contingencies (Note 9)
Stockholders' equity
Common stock, no par value, 22,500,000 shares authorized; 7,482,128 shares issued and outstanding as of June 30, 2022, and 7,469,584 as of September 30, 2021	20,954	19,964
Retained earnings	65,025	63,298
Total stockholders' equity	85,979	83,262
Total liabilities and stockholders' equity	$ 142,372	$ 101,905

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 2,005	$ 1,850
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	22,500,000	22,500,000
Common stock, shares issued	7,482,128	7,469,584
Common stock, shares outstanding	7,482,128	7,469,584

Statements of Income

Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue
Total revenue	$ 6,909	$ 8,527	$ 23,188	$ 24,250
Operating expenses
Compensation and benefits	1,987	2,330	6,360	6,686
General and administrative	1,227	1,124	3,790	3,564
Mutual fund distribution	117	118	450	359
Sub-advisory fees	1,195	1,863	4,642	5,452
Depreciation	52	56	155	181
Total operating expenses	4,578	5,491	15,397	16,242
Net operating income	2,331	3,036	7,791	8,008
Interest expense	562		1,560
Other income	(17)	(1)	(20)	(2)
Income before income tax expense	1,786	3,037	6,251	8,010
Income tax expense	485	793	1,435	2,107
Net income	$ 1,301	$ 2,244	$ 4,816	$ 5,903
Earnings per share
Basic	$ 0.17	$ 0.3	$ 0.64	$ 0.8
Diluted	$ 0.17	$ 0.3	$ 0.63	$ 0.8
Weighted average shares outstanding
Basic	7,480,796	7,364,716	7,477,372	7,361,165
Diluted	7,577,134	7,431,925	7,548,851	7,387,356
Cash dividends declared per share	$ 0.14	$ 0.14	$ 0.41	$ 0.41
Investment advisory fees [Member]
Revenue
Total revenue	$ 6,375	$ 7,903	$ 21,499	$ 22,458
Shareholder service fees [Member]
Revenue
Total revenue	$ 534	$ 624	$ 1,689	$ 1,792

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	2018 Dividend Reinvestment And Stock Purchase Plan [Member]	2021 Dividend Reinvestment And Stock Purchase Plan [Member]	Common Stock [Member]	Common Stock [Member] 2018 Dividend Reinvestment And Stock Purchase Plan [Member]	Common Stock [Member] 2021 Dividend Reinvestment And Stock Purchase Plan [Member]	Retained Earnings [Member]
Beginning balance at Sep. 30, 2020	$ 78,178			$ 18,705			$ 59,473
Beginning balance, Shares at Sep. 30, 2020				7,356,822
Net income	1,773						1,773
Dividends declared	(1,011)						(1,011)
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan		$ 6			$ 6
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares					652
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan		19			$ 19
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan, Shares					2,165
Stock-based compensation	352			$ 352
Ending balance at Dec. 31, 2020	79,317			$ 19,082			60,235
Ending balance, shares at Dec. 31, 2020				7,359,639
Beginning balance at Sep. 30, 2020	78,178			$ 18,705			59,473
Beginning balance, Shares at Sep. 30, 2020				7,356,822
Net income	5,903
Ending balance at Jun. 30, 2021	82,186			$ 19,846			62,340
Ending balance, shares at Jun. 30, 2021				7,366,649
Beginning balance at Dec. 31, 2020	79,317			$ 19,082			60,235
Beginning balance, Shares at Dec. 31, 2020				7,359,639
Net income	1,886						1,886
Dividends declared	(1,012)						(1,012)
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan		$ 3	$ 7		$ 3	$ 7
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares					306	838
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan			19			$ 19
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan, Shares						2,298
Stock-based compensation	351			$ 351
Ending balance at Mar. 31, 2021	80,571			$ 19,462			61,109
Ending balance, shares at Mar. 31, 2021				7,363,081
Net income	2,244						2,244
Dividends declared	(1,013)						(1,013)
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan	13			$ 13
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares				1,424
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan	20			$ 20
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan, Shares				2,144
Stock-based compensation	351			$ 351
Ending balance at Jun. 30, 2021	82,186			$ 19,846			62,340
Ending balance, shares at Jun. 30, 2021				7,366,649
Beginning balance at Sep. 30, 2021	83,262			$ 19,964			63,298
Beginning balance, Shares at Sep. 30, 2021				7,469,584
Net income	1,913						1,913
Dividends declared	(1,027)						(1,027)
Employee restricted stock vested	0						0
Employee restricted stock vested, Shares				10,000
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan			2			$ 2
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares						193
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan			19			$ 19
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan, Shares						1,729
Stock-based compensation	388			$ 388
Employee restricted stock forfeiture	(3)			$ (3)
Repurchase of vested employee restricted stock for tax withholding, Shares				(3,458)
Repurchase of vested employee restricted stock for tax withholding	(37)			$ (31)			(6)
Ending balance at Dec. 31, 2021	84,517			$ 20,339			64,178
Ending balance, shares at Dec. 31, 2021				7,478,048
Beginning balance at Sep. 30, 2021	83,262			$ 19,964			63,298
Beginning balance, Shares at Sep. 30, 2021				7,469,584
Net income	4,816
Repurchase of vested employee restricted stock for tax withholding	(37)
Ending balance at Jun. 30, 2022	85,979			$ 20,954			65,025
Ending balance, shares at Jun. 30, 2022				7,482,128
Beginning balance at Dec. 31, 2021	84,517			$ 20,339			64,178
Beginning balance, Shares at Dec. 31, 2021				7,478,048
Net income	1,602						1,602
Dividends declared	(1,028)						(1,028)
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan			1			$ 1
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares						64
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan			$ 19			$ 19
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan, Shares						1,952
Stock-based compensation	295			$ 295
Employee restricted stock forfeiture	(12)			(12)
Ending balance at Mar. 31, 2022	85,394			$ 20,642			64,752
Ending balance, shares at Mar. 31, 2022				7,480,064
Net income	1,301						1,301
Dividends declared	(1,028)						(1,028)
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan	1			$ 1
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares				145
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan	20			$ 20
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan, Shares				1,919
Stock-based compensation	291			$ 291
Ending balance at Jun. 30, 2022	$ 85,979			$ 20,954			$ 65,025
Ending balance, shares at Jun. 30, 2022				7,482,128

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net income	$ 4,816	$ 5,903
Adjustments to reconcile net income to net cash provided by operating activities Depreciation
Depreciation	155	181
Unrealized gain on marketable securities		(1)
Change in right-of-use asset and operating lease liability	2	(60)
Amortization of note issuance costs	192
Deferred income taxes	1,253	882
Deferred offering costs		(7)
Stock-based compensation	974	1,054
Employee restricted stock forfeiture	(15)
Change in operating assets and liabilities
Investment fee income receivable	627	(418)
Prepaid expenses	252	309
Other accounts receivable	(6)	18
Other assets	35	(10)
Accrued liabilities and accounts payable	(1,408)	(435)
Income taxes payable	(626)	(202)
Net cash provided by operating activities	6,251	7,214
Cash flows from investing activities
Purchases of property and equipment	(156)	(182)
Net cash used in investing activities	(156)	(182)
Cash flows from financing activities
Proceeds from issuance of notes, net of underwriting discount	39,042
Payment of issuance costs on notes	(435)
Repurchase of vested employee restricted stock for tax withholding	(37)
Dividend payments	(3,025)	(2,978)
Net cash provided by (used in) financing activities	35,549	(2,949)
Net increase in cash and cash equivalents	41,644	4,083
Cash and cash equivalents at the beginning of the period	15,836	9,955
Cash and cash equivalents at the end of the period	57,480	14,038
Supplemental disclosures of cash flow information:
Cash paid for income taxes	810	1,427
Cash paid for interest	1,368	0
Dividend reinvestment issued in shares	58	58
2018 Dividend Reinvestment And Stock Purchase Plan [Member]
Cash flows from financing activities
Proceeds from shares issued		9
2021 Dividend Reinvestment And Stock Purchase Plan [Member]
Cash flows from financing activities
Proceeds from shares issued	$ 4	$ 20

Basis of Financial Statement Pr

Basis of Financial Statement Presentation	9 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Financial Statement Presentation	The preparation of financial statements requires management to make estimates and assumptions. Making estimates requires management to exercise significant judgment. Accordingly, the actual results could differ substantially from those estimates. The Company’s operating activities consist primarily of providing investment advisory services to 16 open-end The Company’s operating revenues consist of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from each Hennessy Fund by, among other things: • acting as portfolio manager for the fund or overseeing the sub-advisor • performing a daily reconciliation of portfolio positions and cash for the fund; • monitoring the liquidity of the fund; • monitoring the fund’s compliance with its investment objectives and restrictions and federal securities laws; • maintaining a compliance program (including a code of ethics), conducting ongoing reviews of the compliance programs of the fund’s service providers (including any sub-advisor), sub-advisor) • if applicable, overseeing the selection and continued employment of the fund’s sub-advisor, sub-advisor’s • overseeing service providers that provide accounting, administration, distribution, transfer agency, custodial, sales, marketing, public relations, audit, information technology, and legal services to the fund; • maintaining in-house • preparing or directing the preparation of all regulatory filings for the fund, including writing and annually updating the fund’s prospectus and related documents; • for each annual report of the fund, preparing or reviewing a written summary of the fund’s performance during the most recent 12-month • monitoring and overseeing the accessibility of the fund on third-party platforms; • paying the incentive compensation of the fund’s compliance officers and employing other staff such as legal, marketing, national accounts, distribution, sales, administrative, and trading oversight personnel, as well as management executives; • providing a quarterly compliance certification to the Board of Trustees of Hennessy Funds Trust (the “Funds’ Board of Trustees”); and • preparing or reviewing materials for the Funds’ Board of Trustees, presenting to or leading discussions with the Funds’ Board of Trustees, preparing or reviewing all meeting minutes, and arranging for training and education of the Funds’ Board of Trustees. The Company earns shareholder service fees from Investor Class shares of the Hennessy Funds by, among other things, maintaining a toll-free The Company waived a portion of its fees with respect to the Hennessy Energy Transition Fund through the expiration of the fund’s expense limitation agreement on October 25, 2020. The Company continues to waive a portion of its fees with respect to the Hennessy Midstream Fund and the Hennessy Technology Fund to comply with contractual expense ratio limitations. The fee waivers are calculated daily by the Hennessy Funds’ accountants at U.S. Bank Global Fund Services, reviewed by management, and then charged to expense monthly as offsets to the Company’s revenues. Each waived fee is then deducted from investment advisory fee income and reduces the aggregate amount of advisory fees the Company receives from such fund in the subsequent month. To date, the Company has only waived fees based on contractual obligations, but the Company has the ability to waive fees at its discretion. Any decision to waive fees would apply only on a going-forward The Company’s contractual agreements for investment advisory and shareholder services prove that a contract exists with fixed and determinable fees, and the services are rendered daily. The collectability is deemed probable because the fees are received from the Hennessy Funds in the month subsequent to the month in which the services are provided. (2) Management Contracts Purchased

Management Contracts Purchased

Management Contracts Purchased	9 Months Ended
	Jun. 30, 2022
Text Block [Abstract]
Management Contracts Purchased	Throughout its history, the Company has completed 10 purchases of the assets related to the management of 30 different mutual funds, some of which were reorganized into already existing Hennessy Funds. In accordance with Financial Accounting Standards Board (“FASB”) guidance, the Company periodically reviews the carrying value of its management contracts asset to determine if any impairment has occurred. The fair value of the management contracts asset was estimated as of September 30, 2021, by applying the income approach and is based on management estimates and assumptions, including third-party Under Accounting Standards Codification 350 — Intangibles – Goodwill and Other, intangible assets that have indefinite useful lives are not amortized but are tested at least annually for impairment. The Company reviews the useful life of the management contracts each reporting period to determine if they continue to have an indefinite useful life.

Investment Advisory Agreements

Investment Advisory Agreements	9 Months Ended
	Jun. 30, 2022
Text Block [Abstract]
Investment Advisory Agreements	The Company has investment advisory agreements with Hennessy Funds Trust under which it provides investment advisory services to all classes of the 16 Hennessy Funds. The investment advisory agreements must be renewed annually (except in limited circumstances) by (a) the Funds’ Board of Trustees or the vote of a majority of the outstanding shares of the applicable Hennessy Fund and (b) the vote of a majority of the trustees of Hennessy Funds Trust who are not interested persons of the Hennessy Funds. If an investment advisory agreement is not renewed, it terminates automatically. There are two additional circumstances in which an investment advisory agreement terminates. First, an investment advisory agreement automatically terminates if the Company assigns them to another advisor (assignment includes “indirect assignment,” which is the transfer of the Company’s common stock in sufficient quantities deemed to constitute a controlling block). Second, an investment advisory agreement may be terminated prior to its expiration upon 60 days’ written notice by either the applicable Hennessy Fund or the Company. As provided in each investment advisory agreement, the Company receives investment advisory fees monthly based on a percentage of the applicable fund’s average daily net asset value. The Company has entered into sub-advisory sub-advisory sub-advisory sub-advisor sub-advisors sub-advisory In exchange for the sub-advisory sub-advisory sub-advisors Sub-advisory sub-advised Effective January 31, 2022, the Company and BP Capital Fund Services, LLC mutually agreed to terminate the sub-advisory

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	(4) Fair Value Measurements The Company applies Accounting Standards Codification 820 — Fair Value Measurement for all financial assets and liabilities, which establishes a framework for measuring fair value and expands disclosures about fair value measurements. The standard defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” It also establishes a fair value hierarchy consisting of the following three levels that prioritize the inputs to the valuation techniques used to measure fair value: Based on the definitions, the following tables represent the Company’s assets categorized in the Level 1 to Level 3 hierarchies: June 30, 2022 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 54,116 $ — $ — $ 54,116 Mutual fund investments 10 — — 10 Total $ 54,126 $ — $ — $ 54,126 Amounts included in: Cash and cash equivalents $ 54,116 $ — $ — $ 54,116 Investments in marketable securities 10 — — 10 Total $ 54,126 $ — $ — $ 54,126 September 30, 2021 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 11,554 $ — $ — $ 11,554 Mutual fund investments 10 — — 10 Total $ 11,564 $ — $ — $ 11,564 Amounts included in: Cash and cash equivalents $ 11,554 $ — $ — $ 11,554 Investments in marketable securities 10 — — 10 Total $ 11,564 $ — $ — $ 11,564 There were no transfers between levels during the nine months ended June 30, 2022, or the year ended September 30, 2021. The fair values of receivables, payables, and accrued liabilities approximate their book values given the short-term nature of those instruments. The fair value of the 2026 Notes (see Note 7) was approximately $39.8 million as of June 30, 2022, based on the last trading price of the notes on that date (Level 1).

Leases

Leases	9 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Leases	(5) Leases The Company determines if an arrangement is an operating lease at inception. Operating leases are included in operating lease right-of-use long-term long-term right-of-use long-term Right-of-use right-of-use right-of-use The Company’s most significant leases are real estate leases of office facilities. The Company leases office space under non-cancelable month-to-month right-of-use June 30, 2022 (In thousands, except years and percentages) Operating lease right-of-use $ 740 Current operating lease liability $ 365 Long-term operating lease liability $ 372 Weighted average remaining lease term 2.1 Weighted average discount rate 0.90 % For the nine months ended June 30, 2022, total rent expense for all offices, which is recorded under general and administrative expense in the statements of income, totaled $0.4 million. The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows: June 30, 2022 (In thousands) Remainder of fiscal year 2022 $ 93 Fiscal year 2023 374 Fiscal year 2024 286 Total undiscounted cash flows 753 Present value discount (16 ) Total operating lease liabilities $ 737

Accrued Liabilities and Account

Accrued Liabilities and Accounts Payable	9 Months Ended
	Jun. 30, 2022
Accrued Liabilities, Current [Abstract]
Accrued Liabilities and Accounts Payable	(6) Accrued Liabilities and Accounts Payable Details relating to accrued liabilities and accounts payable reflected on the Company’s balance sheet are as follows: June 30, 2022 September 30, 2021 (In thousands) Accrued bonus liabilities $ 1,760 $ 2,738 Accrued sub-advisor 364 628 Other accrued expenses 619 785 Total accrued liabilities and accounts payable $ 2,743 $ 4,151

Debt Outstanding

Debt Outstanding	9 Months Ended
	Jun. 30, 2022
Debt Instruments [Abstract]
Debt Outstanding	(7) Debt Outstanding On October 20, 2021, the Company completed a public offering of 4.875% notes due 2026 in the aggregate principal amount of $40,250,000 (the “2026 Notes”), which included the full exercise of the underwriters’ overallotment option. The initial net proceeds received were approximately $38,607,000 after considering the impact of issuance costs and underwriter discounts. The 2026 Notes bear interest at 4.875% per annum, payable on the last day of each calendar quarter and at maturity, beginning December 31, 2021. The 2026 Notes mature on December 31, 2026. The 2026 Notes are direct unsecured obligations, rank equally in right of payment with any of the Company’s future unsecured unsubordinated indebtedness, senior to any of the Company’s future indebtedness that expressly provides that it is subordinate to the 2026 Notes, effectively subordinate to all of the Company’s existing and future secured indebtedness, and structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s future subsidiaries.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	(8) Income Taxes The Company’s effective income tax rates for the nine months ended June 30, 2022 and 2021, were 23.0% and 26.3%, respectively. For the nine months ended June 30, 2022, the effective income tax rate was lower than the federal statutory rate due to the recognition of a tax benefit related to a California tax refund of $0.2 million. The Company is subject to income tax in the U.S. federal jurisdiction and various state jurisdictions. As of June 30, 2022, the Company has identified 22 state tax jurisdictions in which it is subject to income tax.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(9) Commitments and Contingencies Other than the operating leases discussed in Note 5, the Company has no commitments and no significant contingencies with original terms in excess of one year.

Equity

Equity	9 Months Ended
	Jun. 30, 2022
Federal Home Loan Banks [Abstract]
Equity	(10) Equity Amended and Restated 2013 Omnibus Incentive Plan The Company has adopted, and the Company’s shareholders have approved, the Amended and Restated 2013 Omnibus stock-based straight-line A summary of RSU activity is as follows: Nine Months Ended June 30, 2022 Shares Weighted Average Grant Date Fair Value per Share Non-vested 323,810 $ 8.87 Granted — — Vested (1) (102,958 ) (9.46 ) Forfeited (7,917 ) (8.76 ) Non-vested 212,935 $ 8.58 (1) Represents partially vested RSUs for which the Company already has recognized the associated compensation expense but has not yet issued to employees the related shares of common stock. Additional information related to RSUs is as follows: June 30, 2022 (In thousands, except years) Total expected compensation expense related to RSUs $ 17,117 Recognized compensation expense related to RSUs (15,289 ) Unrecognized compensation expense related to RSUs $ 1,828 Weighted average remaining years to expense for RSUs 2.5 Dividend Reinvestment and Stock Purchase Plan In January 2021, the Company adopted a Dividend Reinvestment and Stock Purchase Plan (the “DRSPP”), replacing the previous Dividend Reinvestment and Stock Purchase Plan that had been in place since 2018. The DRSPP provides shareholders and new investors with a convenient and economical means of purchasing shares of the Company’s common stock and reinvesting cash dividends paid on the Company’s common stock. Under the DRSPP and its predecessor plans, the Company issued 6,002 and 9,827 shares of common stock during the nine months ended June 30, 2022 and 2021, respectively. The maximum number of shares that may be issued under the DRSPP is 1,470,000, of which 1,454,455 shares remained available for issuance as of June 30, 2022. Stock Buyback Program In August 2010, the Company adopted a stock buyback program. The program provides that the Company may repurchase up to 1,500,000 shares of its common stock and has no expiration date. Share repurchases may be made in the open market, in privately negotiated transactions, or otherwise. A total of 596,368 shares remains available for repurchase under the stock buyback program. The Company did not repurchase any shares of its common stock pursuant to the stock buyback program during the nine months ended June 30, 2022.

Earnings per Share and Dividend

Earnings per Share and Dividends per Share	9 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings per Share and Dividends per Share	(11) Earnings per Share and Dividends per Share Basic earnings per share is determined by dividing net earnings by the weighted average number of shares of common stock outstanding, while diluted earnings per share is determined by dividing net earnings by the weighted average number of shares of common stock outstanding adjusted for the dilutive effect of common stock equivalents, which consist of restricted stock units (“RSUs”). For the three months ended June 30, 2022 and June 30, 2021, all common stock equivalents were dilutive and therefore included in the diluted earnings per share calculation. For the nine months ended June 30, 2022 and June 30, 2021, the Company exclud stock equivalents, respectively, from the diluted earnings per share calculations because they were not dilutive. In all cases, the excluded common stock equivalents consisted of non-vested RSUs. The Company paid a quarterly cash dividend of $0.1375 per share on June 2, 2022, to shareholders of record as of May 23, 2022.

Recently Issued and Adopted Acc

Recently Issued and Adopted Accounting Standards	9 Months Ended
	Jun. 30, 2022
Accounting Changes and Error Corrections [Abstract]
Recently Issued and Adopted Accounting Standards	(12) Recently Issued and Adopted Accounting Standards The Company has reviewed accounting pronouncements issued between the filing date of its most recent Form 10-K, 10-Q

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	(13) Subsequent Events The Company has evaluated subsequent events through the date these financial statements were issued and has concluded that no material events occurred during this period that require recognition or disclosure.

Basis of Financial Statement _2

Basis of Financial Statement Presentation (Policies)	9 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenue Recognition	The preparation of financial statements requires management to make estimates and assumptions. Making estimates requires management to exercise significant judgment. Accordingly, the actual results could differ substantially from those estimates. The Company’s operating activities consist primarily of providing investment advisory services to 16 open-end The Company’s operating revenues consist of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from each Hennessy Fund by, among other things: • acting as portfolio manager for the fund or overseeing the sub-advisor • performing a daily reconciliation of portfolio positions and cash for the fund; • monitoring the liquidity of the fund; • monitoring the fund’s compliance with its investment objectives and restrictions and federal securities laws; • maintaining a compliance program (including a code of ethics), conducting ongoing reviews of the compliance programs of the fund’s service providers (including any sub-advisor), sub-advisor) • if applicable, overseeing the selection and continued employment of the fund’s sub-advisor, sub-advisor’s • overseeing service providers that provide accounting, administration, distribution, transfer agency, custodial, sales, marketing, public relations, audit, information technology, and legal services to the fund; • maintaining in-house • preparing or directing the preparation of all regulatory filings for the fund, including writing and annually updating the fund’s prospectus and related documents; • for each annual report of the fund, preparing or reviewing a written summary of the fund’s performance during the most recent 12-month • monitoring and overseeing the accessibility of the fund on third-party platforms; • paying the incentive compensation of the fund’s compliance officers and employing other staff such as legal, marketing, national accounts, distribution, sales, administrative, and trading oversight personnel, as well as management executives; • providing a quarterly compliance certification to the Board of Trustees of Hennessy Funds Trust (the “Funds’ Board of Trustees”); and • preparing or reviewing materials for the Funds’ Board of Trustees, presenting to or leading discussions with the Funds’ Board of Trustees, preparing or reviewing all meeting minutes, and arranging for training and education of the Funds’ Board of Trustees. The Company earns shareholder service fees from Investor Class shares of the Hennessy Funds by, among other things, maintaining a toll-free The Company waived a portion of its fees with respect to the Hennessy Energy Transition Fund through the expiration of the fund’s expense limitation agreement on October 25, 2020. The Company continues to waive a portion of its fees with respect to the Hennessy Midstream Fund and the Hennessy Technology Fund to comply with contractual expense ratio limitations. The fee waivers are calculated daily by the Hennessy Funds’ accountants at U.S. Bank Global Fund Services, reviewed by management, and then charged to expense monthly as offsets to the Company’s revenues. Each waived fee is then deducted from investment advisory fee income and reduces the aggregate amount of advisory fees the Company receives from such fund in the subsequent month. To date, the Company has only waived fees based on contractual obligations, but the Company has the ability to waive fees at its discretion. Any decision to waive fees would apply only on a going-forward The Company’s contractual agreements for investment advisory and shareholder services prove that a contract exists with fixed and determinable fees, and the services are rendered daily. The collectability is deemed probable because the fees are received from the Hennessy Funds in the month subsequent to the month in which the services are provided. (2) Management Contracts Purchased

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Assets Categorized on Basis of Various Levels	Based on the definitions, the following tables represent the Company’s assets categorized in the Level 1 to Level 3 hierarchies: June 30, 2022 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 54,116 $ — $ — $ 54,116 Mutual fund investments 10 — — 10 Total $ 54,126 $ — $ — $ 54,126 Amounts included in: Cash and cash equivalents $ 54,116 $ — $ — $ 54,116 Investments in marketable securities 10 — — 10 Total $ 54,126 $ — $ — $ 54,126 September 30, 2021 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 11,554 $ — $ — $ 11,554 Mutual fund investments 10 — — 10 Total $ 11,564 $ — $ — $ 11,564 Amounts included in: Cash and cash equivalents $ 11,554 $ — $ — $ 11,554 Investments in marketable securities 10 — — 10 Total $ 11,564 $ — $ — $ 11,564

Leases (Tables)

Leases (Tables)	9 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Detailed Information About In Operating Lease Right Of Use Assets Lease Liabilities and Others	The classification of the Company’s operating lease right-of-use
Schedule Of Operating Lease Maturities	The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows: June 30, 2022 (In thousands) Remainder of fiscal year 2022 $ 93 Fiscal year 2023 374 Fiscal year 2024 286 Total undiscounted cash flows 753 Present value discount (16 ) Total operating lease liabilities $ 737

Accrued Liabilities and Accou_2

Accrued Liabilities and Accounts Payable (Table)	9 Months Ended
	Jun. 30, 2022
Accrued Liabilities, Current [Abstract]
Schedule of accrued liabilities	Details relating to accrued liabilities and accounts payable reflected on the Company’s balance sheet are as follows: June 30, 2022 September 30, 2021 (In thousands) Accrued bonus liabilities $ 1,760 $ 2,738 Accrued sub-advisor 364 628 Other accrued expenses 619 785 Total accrued liabilities and accounts payable $ 2,743 $ 4,151

Equity (Tables)

Equity (Tables)	9 Months Ended
	Jun. 30, 2022
Federal Home Loan Banks [Abstract]
Schedule of Non-Vested Restricted Stock Units Activity	A summary of RSU activity is as follows: Nine Months Ended June 30, 2022 Shares Weighted Average Grant Date Fair Value per Share Non-vested 323,810 $ 8.87 Granted — — Vested (1) (102,958 ) (9.46 ) Forfeited (7,917 ) (8.76 ) Non-vested 212,935 $ 8.58 (1) Represents partially vested RSUs for which the Company already has recognized the associated compensation expense but has not yet issued to employees the related shares of common stock.
Schedule of Non-Vested Restricted Stock Units Compensation	Additional information related to RSUs is as follows: June 30, 2022 (In thousands, except years) Total expected compensation expense related to RSUs $ 17,117 Recognized compensation expense related to RSUs (15,289 ) Unrecognized compensation expense related to RSUs $ 1,828 Weighted average remaining years to expense for RSUs 2.5

Basis of Financial Statement _3

Basis of Financial Statement Presentation - Additional Information (Detail)	9 Months Ended
	Jun. 30, 2022 Funds
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Hennessy funds to which company provides investment advisory services	16

Management Contracts Purchased

Management Contracts Purchased - Additional Information (Detail)	Jun. 30, 2022 USD ($) Funds	Sep. 30, 2021 USD ($)
Contracts In Progress Costs And Earnings [Line Items]
Number of mutual funds | Funds	30
Management contracts impairment amount | $	$ 0	$ 0

Investment Advisory Agreements

Investment Advisory Agreements - Additional Information (Detail)	9 Months Ended
	Jun. 30, 2022 Funds
Investment Schedule [Abstract]
Number of Hennessy funds to which company provides investment advisory services	16
Notice period for termination of agreement	60 days

Fair Value Measurements - Asset

Fair Value Measurements - Assets Categorized on Basis of Various Levels (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund deposits	$ 54,116	$ 11,554
Mutual fund investments	10	10
Cash and cash equivalents	54,116	11,554
Investments in marketable securities	10	10
Total	54,126	11,564
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund deposits	54,116	11,554
Mutual fund investments	10	10
Cash and cash equivalents	54,116	11,554
Investments in marketable securities	10	10
Total	$ 54,126	$ 11,564

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2022	Sep. 30, 2021
Transfer from fair value level 1 to level 2	$ 0	$ 0
Transfer from fair value level 2 to level 1	0	0
Transfer into (out of) level 3	0	$ 0
Level 1 [Member] | Notes Payable [Member] | 2026 Notes [Member]
Notes payable fair value	$ 39,800,000

Leases - Schedule Of Operating

Leases - Schedule Of Operating Lease Maturities (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Operating lease right-of-use  assets	$ 740	$ 1,010
Current operating lease liability	365	359
Long-term operating lease liability	$ 372	$ 646
Weighted average remaining lease term	2 years 1 month 6 days
Weighted average discount rate	0.90%

Leases - Detailed Information A

Leases - Detailed Information About In Operating Lease Right Of Use Assets Lease Liabilities and Others (Detail) $ in Thousands	Jun. 30, 2022 USD ($)
Remainder of fiscal year 2022	$ 93
Fiscal year 2023	374
Fiscal year 2024	286
Total undiscounted cash flows	753
Present value discount	(16)
Total operating lease liabilities	$ 737

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2021
Additional operating lease term	3 years
Operating lease right-of-use  assets	$ 740	$ 1,010
Novato California [Member]
Operating lease expiry date	Jul. 31, 2024
Operating lease right-of-use  assets	$ 1,100
General and Administrative Expense [Member]
Operating lease rent payments	$ 400

Accrued Liabilities and Accou_3

Accrued Liabilities and Accounts Payable - Summary of accrued expenses reflected on the company's balance sheet (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Accrued Liabilities, Current [Abstract]
Accrued bonus liabilities	$ 1,760	$ 2,738
Accrued sub-advisor fees	364	628
Other accrued expenses	619	785
Total accrued liabilities and accounts payable	$ 2,743	$ 4,151

Debt Outstanding - Additional I

Debt Outstanding - Additional Information (Detail) - 2026 Notes [Member] - Notes Payable [Member]	Oct. 20, 2021 USD ($)
Debt Instrument [Line Items]
Debt Instrument, Interest rate	4.875%
Debt Instrument, Face Amount	$ 40,250,000
Debt Instrument, Payment terms	The 2026 Notes bear interest at 4.875% per annum, payable on the last day of each calendar quarter and at maturity, beginning December 31, 2021.
Proceeds from Debt, Net of issuance costs	$ 38,607,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective tax rates	23%	26.30%
Recognition of tax benefits	$ 0.2

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	9 Months Ended
	Jun. 30, 2022
Commitments And Contingencies Description	Other than the operating leases discussed in Note 5, the Company has no commitments and no significant contingencies with original terms in excess of one year.

Equity - Additional Information

Equity - Additional Information (Detail) - shares	1 Months Ended	9 Months Ended
	Aug. 31, 2010	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum common stock issuable under plan		22,500,000		22,500,000
Stock buyback program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance under plan		596,368
Repurchase of common stock shares	1,500,000
Dividend Reinvestment and Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period shares		6,002	9,827
Maximum common stock issuable under plan		1,470,000
Shares available for issuance under plan		1,454,455
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation by share based award term of vesting		4 years
Rate of restricted stock units vest under plan		25%

Equity - Schedule of Non-Vested

Equity - Schedule of Non-Vested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Jun. 30, 2022 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested Beginning Balance, Number of Restricted Share Units | shares	323,810
Granted, Number of Restricted Share Units | shares	0
Vested, Number of Restricted Share Units | shares	(102,958)
Forfeited, Number of Restricted Share Units | shares	(7,917)
Non-vested Ending Balance, Number of Restricted Share Units | shares	212,935
Non-vested Beginning Balance, Weighted Avg. Fair Value Per Share at Each Date | $ / shares	$ 8.87
Granted, Weighted Avg. Fair Value Per Share at Each Date | $ / shares	0
Vested, Weighted Avg. Fair Value per Share at Each Date | $ / shares	(9.46)
Forfeited, Weighted Avg. Fair Value per Share at Each Date | $ / shares	(8.76)
Non-vested Ending Balance, Weighted Avg. Fair Value Per Share at Each Date | $ / shares	$ 8.58

Equity - Schedule of Non-Vest_2

Equity - Schedule of Non-Vested Restricted Stock Units Compensation (Detail) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total expected compensation expense related to RSUs	$ 974	$ 1,054
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total expected compensation expense related to RSUs	17,117
Recognized compensation expense related to RSUs	(15,289)
Unrecognized compensation expense related to RSUs	$ 1,828
Weighted average remaining years to expense for RSUs	2 years 6 months

Earnings per Share and Divide_2

Earnings per Share and Dividends per Share - Additional Information (Detail) - $ / shares		9 Months Ended
	Jun. 02, 2022	Jun. 30, 2022	Jun. 30, 2021
Weighted Average Amounts Used In Calculating Earnings Per Share [Line Items]
Dividends paid	$ 0.1375
Restricted Stock Units (RSUs) [Member]
Weighted Average Amounts Used In Calculating Earnings Per Share [Line Items]
Stock options excluded from diluted earnings per share		241	73,852